Equity Valuation and Negative Earnings

1. Front Matter

   Pages i-xv

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2. Introduction

   1. Front Matter

      Pages 1-1

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   2. Introduction

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 3-16

3. Literature Review

   1. Front Matter

      Pages 17-17

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   2. The Ohlson and Feltham Ohlson Models

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 19-41

   3. The Value Relevance of the Variables Earnings and Book Value of Equity for Valuation Purposes

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 43-63

   4. The Impact of Investment in Intangible Assets on the Market Value

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 65-82

4. Empirical Study

   1. Front Matter

      Pages 83-83

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   2. Period, Sample Selection and Definition of Variables

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 85-106

   3. Method

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 107-137

   4. Analysis and Discussion of Results

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 139-157

5. Conclusions

   1. Front Matter

      Pages 159-159

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   2. Conclusions and Suggestions for Further Research

      • Ana Paula Matias Gama, Liliane Cristina Segura, Marco Antonio Figueiredo Milani Filho

      Pages 161-167

Building upon Feltham and Ohlson models, this book examines positive loss-earnings within the context of the dot.com bubble during the boom years of the late 1990s bull market. The strong demand for equity financing captured the imagination of investors from Europe and U.S. like never before. With a focus on U.S. Internet companies, the book explores both the birth and the death of the new economy, and how negative earnings and losses still garnered large investments and successful IPOs (Initial Public Offerings). As Internet based ventures and the digital economy keep attracting large amounts of equity financing, this book explains that there is something unique in the valuation and pricing of tech companies. The book was written for corporate financiers, capital market professionals, and academics to further their understanding of equity valuation and the effects of equity trading.

• Digital Economy
• IPOs and Equity Offerings
• Internet Stocks
• New Economic Era
• Ohlson Models

• Management and Economis Department, University of Beira Interior, Covilhâ, Portugal

  Ana Paula Matias Gama

• Universidade Presbiteriana Mackenzie, São Paolo, Brazil

  Liliane Cristina Segura

• State University of Campinas - UNICAMP, Limiera, Brazil

  Marco Antonio Figueiredo Milani Filho

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